Karnataka Eases Shop Registration, Bars Employers from Holding Workers' Documents

Karnataka notified the Shops and Commercial Establishments (Amendment) Act, 2026 on 4 September, which received Governor's assent the previous day and took effect immediately. The law simplifies regulatory compliance and strengthens employee protections under the 1961 Act.

Establishments with 10 or more workers already registered under the Occupational Safety, Health and Working Conditions Code, 2020 are now exempt from separate registration. Godowns or storage within 100 metres of the main premises also need not register separately. All registration applications, renewals and related matters must now be processed digitally, with disposal time reduced from 30 to 7 days. Registrations remain valid indefinitely, eliminating periodic renewal requirements.

Crucially, employers are now prohibited from retaining employees' original educational certificates, experience certificates or other documents during or after appointment. Employers must issue service certificates within seven days of an employee's request.